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Problem #4 Point of Recognition Edgel Abear Car Repairs Shop purchases a large amount of auto parts for its business. The following table summarizes selected transaction data: Date Received July Amount P30,000 75,000 Order Date Shipped A June 26 5 B. July 10 15 40,000 60,000 C 16 22 30 23 27 75,000 50,000 Aug. 1 F Aug. 3 7 Required: Determine the July total purchases under each of the following assumptions: 1. The entity recognizes purchases when orders are shipped. 2. The entity recognizes purchases when orders are received.

Problem #4 Point of Recognition Edgel Abear Car Repairs Shop purchases a large amount of auto parts for its business. The following table summarizes selected transaction data: Date Received July Amount P30,000 75,000 Order Date Shipped A June 26 5 B. July 10 15 40,000 60,000 C 16 22 30 23 27 75,000 50,000 Aug. 1 F Aug. 3 7 Required: Determine the July total purchases under each of the following assumptions: 1. The entity recognizes purchases when orders are shipped. 2. The entity recognizes purchases when orders are received.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem #4 Point of Recognition Edgel Abear Car Repairs Shop purchases a large amount of auto parts for its business. The following table summarizes selected transaction data: Amount P30,000 75,000 40,000 60,000 Date Received Order Date Shipped 26 A June July 5 в July 10 15 C 16 22 23 30 E 27 Aug. 1 75,000 Aug. 7 50,000 Required: Determine the July total purchases under each of the following assumptions: 1. The entity recognizes purchases when orders are shipped. 2. The entity recognizes purchases when orders are received.
Transcribed Image Text:Problem #4 Point of Recognition Edgel Abear Car Repairs Shop purchases a large amount of auto parts for its business. The following table summarizes selected transaction data: Amount P30,000 75,000 40,000 60,000 Date Received Order Date Shipped 26 A June July 5 в July 10 15 C 16 22 23 30 E 27 Aug. 1 75,000 Aug. 7 50,000 Required: Determine the July total purchases under each of the following assumptions: 1. The entity recognizes purchases when orders are shipped. 2. The entity recognizes purchases when orders are received.
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